Tips against overextension – The consumer insolvency

An other possibility to free of debts itself offers the consumer insolvency procedure. This is subdivided into three parts. Firstly, the extrajudicial attempt at reconciliation also stands here. If this fails, a judicial debt settlement procedure joins. Moreover a suitable application is to be submitted at responsible insolvency court. This must contain the following information:

* a certificate of the suitable place or person about the failure of the extrajudicial attempt at reconciliation within the last six months before application position. The failed debt settlement plan must be added with information of the essential reasons of the failure,
* a list of the believers and their demands,
* a comprising overview and a detailed list of the income and property,
* the second debt settlement plan (can be identical with the plan of the extrajudicial attempt),
* the application for rest debt freeing,
* an explanation that the information is entire and right,
* a cession explanation of the trustee or the trustee,
* if necessary application for extension of the procedural costs

Now the court tries once again to cause a concerted solution, while it blocks the debt settlement plan to the debtees. Now any more all believers, but only the majority must not agree “after heads and debt sum” to the plan. If this happens, the settlement plan has the effect of a judicial comparison. The believers have such a title with which they can apply if necessary for the enforcement if the debtor does not keep to the plan. Because the plan is mostly favorable for the debtor, you are well-advised to fulfil your obligations from the plan. Otherwise the believers can assert her demands by the original height.

The real insolvency procedure

If the court can also cause no concerted solution, the real insolvency procedure joins in the third phase. To open this procedure, you must dispose of impoundable property or income. The court will use a trustee (mostly a lawyer) who will use then this property or (sell, the believers auction etc.) and with the proceed gives satisfaction. These must announce her demands by the trustee. By the publication of the court order in newspapers or on the Internet the believers get to know from the upcoming insolvency procedure and have thus the possibility to inform the trustee about her demand.

If you have made an application for rest debt freeing, now the court checks whether reasons are given which speak against such an application. This would be, for example the case when you false statements about your income or his property have made. If no reasons are given for the refusal of the rest debt freeing, the court finds out that to you at the end of the good behaviour phase your debts remained still then can be remitted if you follow in this time to your obligations and stand in the way then of the application for rest debt freeing still no grounds for denying approval.

The good behaviour phase

The good behaviour phase lasts a total of six years. In this time you must deliver furthermore the impoundable part of your income to the ordered trustee who erases with it the debts. In addition, you must be gainfully employed in this time or take care seriously of an employment. Every reasonable work must be accepted. Inheritances must be delivered half of it to the trustee and every flat and workplace change must be indicated towards the trustee.

If this is kept up everything during the whole good behaviour phase, all rest debts can be remitted to you after six years. Nevertheless, it is better, only not to grope about at all in the debt case and to let prevail already early the discipline with the contact with money which one needs then within the scope of any insolvency procedure compelling.

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